Recommended Budget Volume One.book - Chief Executive Office ...

■ A projected ten-percent (10%) increase in retiree health
insurance premiums in FY 2011-12.
■ An overall decrease in deferred compensation plan costs due
to reduced County contribution rates along with a
corresponding decrease in the County's total annual
contribution limit as approved by the Board of Supervisors.
■ An increase of seventeen percent (17%) in the employer
retirement contributions due to the decline in the Los Angeles
County Employees Retirement Association (LACERA) portfolio
and revised investment return assumptions.
■ A decrease in utilities costs primarily due to current and
estimated reductions in electricity, natural gas, and telephone
costs.
■ A decrease in General County Overhead (GCO) based on the
FY 2011-12 County Cost Allocation Plan.
■ A decrease in commercial insurance premiums, automotive
liability and general liability, partially offset by an increase in
indemnity and litigation costs associated with medical
malpractice.
■ A net decrease in revenue, primarily due to the deletion of the
Hospital Provider Fee; the reversal of the enhanced Federal
Medical Assistance Percentage (FMAP) impact on various
Medi-Cal revenues; and the deletion of one-time Measure B
HEALTH SERVICES
Budget Summaries
reserves; partially offset by increases for Cost-Based
Reimbursement Clinics revenue, Managed Care Rate
■
Supplement (MCRS) revenues, mental health revenue, and
Medicare and an increase in Assembly Bill 915 revenues based
on revenue trends.
Various other cost changes and position adjustments
including: increases for projected Cost-of-Living Adjustments
for supplies; increased debt service costs; partially offset by
decreased funding for Sayre Fire building replacement costs;
decreased rents and leases costs; and a net cost decrease for
overhead charges, billed among departments and within the
Department.
■ A net reduction in pharmaceutical costs based on projected
savings from efficiency initiatives, partially offset by
■
anticipated cost increases related to the pharmaceutical
Consumer Price Index (CPI) of 7.6 percent, which has been
applied to the FY 2011-12 estimated costs.
A net increase to the placeholder reduction in revenues to
address the Department’s deficit for FY 2011-12. The
Department anticipates addressing the deficit primarily with
the use of 1115 Waiver revenue, and is working on a plan to
achieve savings and/or generate additional revenue to
mitigate the remaining deficit placeholder.
FY 2011-12 Recommended Budget Volume One 27.51 County of Los Angeles